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If your employer finds out that you supported the "wrong" political party, can they fire you?
Absent an employment contract, yes,
Regarding this story, the facts aren't very clear. I read the article carefully and it seems like the only students punished were those who participated in team sports and signed a "code of conduct". If this is the case, and they were only suspended from participating in sports, then I feel the school was within their rights, despite the flimsy evidence.
On a similar note, one of the local high schools has had mandatory, random drug testing for seveal years. Anyone who wishes to participate in any sports, clubs or park his car on school grounds has to submit. If they test positive they are referred for counseling and may be suspended from their team and/or lose their parking sticker. But they are not suspended from school.
This has been challenged in the courts and it was decided that the school cannot use these tests to deny a student his right to an education. But no student has a right to play football or park his car.
Students can still be suspended for the standard behavior issues. Oddly enough, if a kid shows up to school drunk or stoned, they can kick him out, but they can't test him unless they get a court order or his parent's permission.